Category: Stock Option Trading News

In the article, “North Korea – Nuclear Bombs – Defense Contractors“, we analyzed the defense contractor industry for covered calls stock options opportunities and all of the positions we selected were fully profitable with an average return of +3%.

In article, “Visa – Plastic Money – IPO“, we analyzed the credit card industry and we used PowerOptions patented SmartSearchXL stock options search tool to find two potential income producing covered calls strategy positions, one for Master Card (MA) and one for American Express (AXP). Both positions returned the maximum potential profit with an average return of 3%, and best of all; the return was generated in only 38 days.

In article, “DJIA – Stock Price Resistance“, we outlined a bearish strategy for the Dow Jones Industrial Average when the index is close to its historic high using bear call spreads options. In article, “DJIA – Price Resistance – Revisited“, we analyzed the results of the selections in “DJIA – Stock Price Resistance” denoting a -3.2% loss and we also selected positions again for this strategy for stock options expiring in November of 2006. The selection for stock options expiring in November of 2006 was fully profitable returning a very nice +8.1% return.

FedEx (FDX) recently announced its FedEx Express business unit would increase shipping rates 3.5% starting next year for cargo. In addition, FedEx indicated it would increase rates for ground shipments next year. The stock price of FedEx’s rival United Parcel Service (UPS) plunged 17% in July/August of this year after reporting mediocre earnings and a poor outlook for the coming year. UPS’s stock price has since recovered somewhat since the July/August drop but UPS’s stock price is still down 10% from its top.

Some analysts are predicting Ford Motor Company (F), Chrysler (DCX) and General Motors (GM) may turn out to be big winners as a result of the Democrats newly acquired power in the House of Representatives. Particularly, it is because Rep. John Dingell is the most likely candidate to become the chairman of the House Energy and Commerce Committee ( reuters.com ).

The share prices of drugstore chains and pharmacy-benefits managers have been steadily declining since Wal-Mart announced that it planned to cut the price on some of its generic drugs to $4 for a 30-day supply.

The 2nd annual Value Investing Congress will meet in the Time Warner Center in New York City on November 9th and 10th ( valueinvestingcongress.com ). The congress promises to bring you “sessions packed with investment wisdom and profitable ideas.” This conference was the impetus for us to look for stocks that value investors think are a good buy right now.

Delta Petroleum Corporation (DPTR) is a Denver, Colorado company that concentrates on the production and sale of natural gas and crude oil. They are an independent company that has seen significant movement in their stock price in the last month – $19.50 to its current price of $26.50.

In a previous article, “Bearish Trading & REITs“, we outlined a bear call credit spreads strategy for Real Estate Investment Trusts (REITs). In the article, a bear credit call spreads position for MLS was selected with a maximum return of 7.5%. Since MLS remained below the short call strike price of $17.5, the position was fully profitable.

Wal-Mart recently announced it has introduced $4 prescriptions for generic drugs and currently offers $4 generic drug prescriptions in these 15 states: Alaska, Arizona, Arkansas, Delaware, Florida, Illinois, Indiana, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Texas & Vermont.